The Nifty 50 opened on a positive note on Monday at 24,285 and climbed to an intraday high of 24,313 within the first hour before reversing sharply and ending at 24,219, down around 0.14%. The index formed a bearish candle on the daily chart, indicating renewed selling pressure at higher levels.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said the selling emerged precisely around the 24,300-24,400 supply zone, which had been flagged as a key resistance area. "The nearest support stands at 24,000, followed by 23,890 where the unfilled gap still waits, while resistance remains at 24,300 and 24,400," he said.
Market volatility also picked up, with India VIX rising around 3%, suggesting that demand for downside protection is increasing again.
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Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said the Nifty formed a bearish candle with a lower wick on the daily chart. The lower wick reflected the index recovering part of its earlier losses during the latter half of the session.
Bank Nifty Outlook
Bank Nifty also opened with a gap-up but failed to sustain higher levels, reversing quickly and moving sharply lower during the session. A late recovery helped the index recoup part of its losses, with Bank Nifty eventually settling at 57,526, down 0.41%.
The index formed a bearish candle with a noticeable lower wick on the daily chart, indicating some buying interest at lower levels. However, the broader setup remains sideways.
On the downside, the immediate support for Bank Nifty is placed in the 57,100-57,000 zone. A sustained move below this range could extend the decline towards 56,600, followed by 56,200 in the short term. On the upside, 57,900-58,000 is likely to act as the immediate resistance zone. A decisive breakout above 58,000 could improve the near-term outlook, while failure to reclaim this area would keep the index in its prevailing range-bound structure.
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